Malaysia Airlines to axe 6,000 jobs in radical restructuring
Tragedy-struck airline will be taken private and slash long-haul flights as it battles for survival
Malaysia Airlines is set to slash 6,000 jobs and stop trading as a public-listed company in a major structuring in an effort to stay afloat following two air disasters.
State fund Khazanah Nasional said 30 per cent of its 20,000 workforce will go and a new chief executive will be brought in as part of a six billion ringgit (£1.2 billion) restructuring that will see Malaysia Airlines taken fully private by the end of the year.
The wealth fund, which holds a majority stake in the embattled airline, said it hopes to make the group profitable by 2018 and plans to re-list in three to five years once the restructuring is completed. The airline is also set to scale back long-haul flights in an effort to slash costs.
"The combination of measures announced today will enable our national airline to be revived," said Azman Mokhtar, head of state investment fund Khazanah Nasional.
Malaysia Airlines has seen its share price decline 40 per cent following the loss of the MH370 over the Indian Ocean and the tragic crash of the MH17 in eastern Ukraine as it flew over a rebel-controlled area, killing 298 people and taking the total death toll to 537 passengers and crew.
Video: Major restructuring at Malaysia Airlines
Earlier this week, the airline reported a widening loss of 307 million ringgit (£58.7m) in the second quarter as it warned of a continuing "sharp decline" in weekly bookings as a result of the MH370 and MH17 disasters, which have taken a heavy toll on the company's reputation.
- 1 California man brutally beat 82-year-old Sikh grandfather he mistook for 'one of those people'
- 2 Charles Kennedy 'had better judgement drunk than many sober politicians' says Ian Hislop
- 3 Gay teenager 'forced to have sex with his own mother' to 'cure' his homosexuality, campaigners in India say
- 4 Fifa corruption: Qatar says investigations are racist, anti-Arab and show 'ugly face' of countries who lost 2022 World Cup bid
- 5 We have six months to save the world, says leading economist
California man brutally beat 82-year-old Sikh grandfather he mistook for 'one of those people'
Sepp Blatter resigns: FBI are investigating outgoing Fifa president, claims report
Alton Towers crash: Four guests seriously injured as Smiler ride carriages collide
Charles Kennedy 'had better judgement drunk than many sober politicians' says Ian Hislop
Gay teenager 'forced to have sex with his own mother' to 'cure' his homosexuality, campaigners in India say
Thousands of teenage girls enduring debilitating illnesses after routine school cancer vaccination
Migrants in Kos: Photos show real tragedy after Brits abroad complain of 'awkward' holidays
British tourists complain that impoverished boat migrants are making holidays 'awkward' in Kos
Michael Gove determined to scrap the Human Rights Act – even if Scotland retains it
Threat to scrap Human Rights Act could see UK follow Nazi example, warns UN official
Church of England 'one generation away from extinction' after dramatic loss of followers
iJobs Money & Business
£30000 - £35000 per annum: Recruitment Genius: The UK's fastest growing, multi...
£70000 - £90000 per annum: Recruitment Genius: A Financial Reporting Manager i...
£23000 - £25000 per annum: Recruitment Genius: They win lots of awards for the...
£13500 - £20000 per annum: Recruitment Genius: This nationwide enforcement com...